DIRECT FROM MIDREX 1ST QUARTER 2021 50 YEARS

ArcelorMittal Hamburg Turns 50 Leading Another Ironmaking Renaissance

ADAPTING TO RAW ENERGY TRANSITION NEWS & VIEWS NEWS & VIEWS MATERIALS IN THE EUROPEAN Mikhailovsky HBI Tosyali Algérie CHALLENGES STEEL INDUSTRY Selects MIDREX Sets World Reality not Exception Process Production Record 2 < >

depletion of natural resources in pursu- ral gas-based MIDREX® Plants because COMMENTARY ing that performance. Our challenge, they offer a solution for today and the as an industry, is to seek and preserve a right platform for the future. (Editor’s balance between the two. Note: Mikhailovsky HBI signed a con- Moving forward toward a better tract recently with Primetals Technolo- future involves more than new products gies and Midrex Technologies to supply WHERE WE and services. It involves caring for peo- the world’s largest HBI plant in Rus- ple – our teammates and those around sia. See “News & Views” in this issue of GO FROM HERE us; being positive – in our attitudes and Direct From Midrex.) MIDREX NG

By Stephen C. Montague actions; and embracing change – being offers an immediate reduction in CO2 President & CEO nimble and willing to make adjustments. emissions compared with blast furnace Companies have two bottom lines: profits ironmaking and can be easily adapted to and people, and neither thrives without replace natural gas with “green” hydro-

the other. gen. Our solution, called MIDREX H2, is I was recently reminded of com- ready to go as more hydrogen becomes ments made by the late Dr. John Stubbles available at competitive prices. The ad- more than 20 years ago in an article he vent of hydrogen-based ironmaking and wrote for Direct From Midrex that are the increased use by DRI plants of iron as relevant today as they were then: “We oxide pellets containing lower percent- are on the threshold of perhaps the most ages of iron (62-65%) will also encourage exciting technical era the steel industry the development of a new type of elec- has ever known. The process options are tric melter, and we are already helping mind-boggling; the potential furnace and to develop solutions for that now. mill designs imaginative; new products I think John Stubbles would look are waiting to happen.” around today and say, “I told you so.” As 2020 brought changes that no The global awakening to environ- we seek to move beyond the challenges one could have predicted and mental realities is driving research and of 2020, we must remain aware of op- challenges that have significant- development projects intended to lead portunities, dedicated to our goals, and ly altered what we regarded as to fossil fuel-free steelmaking. Midrex is be willing to change. “normal.” But as uncomfortable involved in several such projects includ- ing ArcelorMittal in Hamburg, Germany, as change can be, it encourages where we are working on a demonstra- innovation, and innovation drives tion plant that will produce about 100,000 This issue of Direct From Midrex progress. It motivates us to seek tons of direct reduced iron per year, ini- includes three feature articles: Part 1 and create something better. tially with “grey” hydrogen sourced from of a two-part series on the challenges of sourcing traditional DR-grade iron No one can make a completely natural gas. Conversion to “green” hydro- oxide pellets and the options available accurate forecast of the future or predict gen from renewable energy sources will to MIDREX Plant operators; a descrip- exact timing of major events; that is why take place once it is available in sufficient tion of one technology for developing we track market trends carefully and count quantities and at an economical cost. e-fuel synthesis, an essential step in on our agility to make small course correc- The plant will be the world’s first direct producing renewable, low cost hydrogen for iron and steel production; tions along the way with the goal of achiev- reduction plant on an industrial scale, and a celebration of 50 years of ing “sustainability” – the ability to maintain powered by hydrogen. operation by the ArcelorMittal a certain rate or level of performance. But We are also seeing increased interest Hamburg DRI plant. sustainability also means avoiding the among investors for building new natu-

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By JOHN LINKLATER ADAPTING TO Services Program Manager – RAW MATERIALS Midrex Global Solutions CHALLENGES PART 1 OPERATING MIDREX PLANTS WITH LOWER GRADE PELLETS & LUMP ORES

INTRODUCTION he changing pricing of the different grades of raw mate- of their products. Some facilities introduced or increased the Trial relative to each other that are available to charge use of lump ore in their feed-mix as a method to counter both a DR furnace combined with the effect of the different the difficulty of securing DR-grade pellets and the rising costs. materials on EAF yield and consumption of consumables Other facilities began using blast furnace (BF)-grade pellets. should be taken into account when looking at the overall ef- This article is the first of a two-part series that will inves- fect of making a raw material change. It is not just a sim- tigate some of the things to take into consideration when using ple comparison of one raw material price versus another. lower grade oxide pellets or lump ores to operate a MIDREX® The worldwide production of direct reduced iron (DRI) Plant. In Part 1, we will look at how the chemistry of the iron has steadily increased over the last 50 years, with global pro- oxide pellets affects the use of DRI/HBI in the EAF and the BF. duction exceeding 100 million tons in 2019.1 The increased We will explore what makes a pellet DR-grade and compare it production rates have resulted in an increased demand for with a BF-grade pellet, and discuss the advantages and disad- direct reduction (DR)-grade pellets. This increased demand, vantages of lump ores and BF-pellets in the feed mix for making combined with a reduction in DR-grade iron oxide produc- DRI products. tion (due to the temporary closures at two pelletizing facili- ties), resulted in a shortage of DR-grade pellets in the first half PART 1 of 2019. This, in turn, resulted in an increase of DR-grade pel- let prices and made it difficult for some DR facilities to secure DRI/HBI USE IN AN EAF VS. A BLAST FURNACE raw material. To make matters worse, as the cost of producing In a blast furnace, the impurities (gangue) are removed by the DRI and hot briquetted iron (HBI) increased due to rising raw formation of liquid slag. The DR process does not form a liq- material costs, steel prices declined worldwide, thus forc- uid slag and the impurities are concentrated instead of being ing DRI and HBI facilities to look for ways to reduce the cost removed, as illustrated in Figure 1.

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COMPARISON OF DR-GRADE VS. BLAST FURNACE IRON OXIDE PELLETS It is important to realize the difference be- DIRECT REDUCTION tween DR-grade pellets, blast furnace pellets, and lump ore to fully understand the effect of substituting materials. From research and testing in plants by iron ore companies, it has been established that the optimum composi- tion of a DR-grade oxide pellet depends on Fe2O3 Gangue Fe-met FeO Gangue specific plant conditions. DR-grade pellets are Pellet consists of: Assuming 95% metallization, direct 95.8% Fe2O3, 4.2% gangue reduction of 100kg results in: the top tier of quality and come with a pre- 0.95 x 67 = 63.65kg Fe (metallized) mium. 0.05 x 67 = 3.65kg FeO (unmetallized) 4.2kg gangue remaining The following factors differentiate between the pellet grades: DRI contains: 94.1% Fe-tot 89.4% Fe-met • Fe content – DR-grade pellets contain 67% 5.9% gangue Fe or more versus blast furnace-grade pel- lets, which typically are 65% Fe or less. The FIGURE 1. Effect of reduction on gangue concentration2 (Simplified calculation – factors such as carbon content and higher the iron content, the lower the gangue – notably slag-formers in final DRI excluded) acidic components like SiO2 and Al2O3. Because the majority of DRI/HBI is melted directly in an oxidizing The chemical composition of the iron oxide/final product is steelmaking furnace, higher acid gangue will lead to a of great importance in steelmaking because: larger slag volume in the steelmaking furnace and higher • High gangue content increases electrical power and iron losses to the slag. This is less of a concern for HBI that refractory consumption in electric arc furnace (EAF) will be consumed in a blast furnace under highly reducing steel production. conditions. However, the higher Fe content may be needed • Lime, magnesia, silica, alumina, and titania affect the to meet the density requirement for maritime transport. reducibility of the iron oxide and can impose a practical • Reducibility – the degree of reduction has a significant limit on the maximum degree of metallization that can be impact on overall Fe yield. Factors that influence reduction obtained. of oxide pellets in the direct reduction shaft furnace are: • The maximum allowable sulfur content in the iron oxide for – The gangue percentage will determine the degree of the MIDREX Direct Reduction Process is in the order of reduction that can be commercially achieved. The 0.01%. A significant level of sulfur release from the iron best way to evaluate the reducibility of a pellet is to oxide will reduce the capacity of the reformer if sulfur test it in a laboratory. absorbing equipment is not installed. Almost all – Metallization or the degree of reduction of the pellet commercially available oxide pellets have less than 0.01% has an impact on the energy consumption of the sulfur and are suitable for direct reduction. Some types of EAF steelmaking furnace. DRI metallization is lump ores contain 0.01% or less sulfur. Cold discharge defined as the percentage of metallic iron in the plants can tolerate at least 0.03% sulfur in the feed, which reduced pellet divided by the total iron in the re- is close to the acceptable limit for reduced product used for duced pellet. making steel. • The mechanical properties of the oxide, such as crush strength or drop strength, impact the overall yield of the Metallization % = Femet x 100% plant, as oxide fines/dust can be generated during handling Fetotal and storage. They also affect the number of fines generated in the furnace, which reduces its yield of DRI product.

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• Metallization – Steelmaking EAFs are average crushing strength but with 10% of material having very low strength is not well-suited for converting unreduced not necessarily ideal. It is important to consider not only the average strength FeO to metallic iron. A reduction in metal- of the DRI but also the standard deviation and minimum values. This is a lization increases the required energy to demonstration of the importance of ore selection. melt the material. DRI or HBI with very low metallization may result in significant iron loss to the slag in the EAF. • General pellet chemistry – The type and percentages of chemical elements will determine the tendency of pellets to stick

and form clusters in the shaft furnace. 2.5% 13.5% 34% 34% 13.5% 2.5% Process upset conditions in the shaft 5 20 35 65 90 110 150 furnace can result in significant iron unit DRI Crushing strength, kg loss to non-prime product, which may or FIGURE 2. Hypothetic distribution of CDRI pellet crush strength may not be suitable for recycling through the shaft furnace. Key factors between a DR-grade pellet and a typical blast furnace grade pellet 2 • Sulfur and phosphorus content – High S are listed in Table 1 : and/or P levels in the DRI/HBI may require CHEMICAL PROPERTIES different slag practices in the EAF to re- DR-Grade Pellets Blast Furnace Grade Pellets Lump Iron Ore move the contaminants. There can be High Iron Content Fe, total Fe, total iron 63 - 65%. Fe, total iron > 67%. (becoming iron > 67%. more difficult to source) product yield loss increases in the slag. Acidic Gangue: Acidic Gangue Acidic Gangue:

Silica SiO2 1.0 - 3.0 Silica SiO2 2.5 – 5.3 Silica SiO2 1.0 - 3.0

MECHANICAL PROPERTIES Alumina AI203 0.2 – 3.0 Alumina AI203 0.4 Alumina AI203 0.2 – 3.0

The oxide pellet chemistry and pellet produc- Basicity 4 Basicity 4 Basicity 4 (CaO+MgO) (SiO +Al O ) tion process will influence the mechanical (CaO+MgO) (SiO +Al O ) (CaO+MgO) (SiO +Al O) 2 2 3 2 2 3 2 2 Magnesia MgO 0.2 – 0.9 Magnesia MgO 0.2 – 0.9 Magnesia MgO 0.3 – 1.5 strength of both the oxide pellet and the result- Lime CaO 0.4 – 1.2 Lime CaO 0.4 – 1.2 Lime CaO 0.6 – 3.6 ing reduced pellet. The strength of CDRI pellets Usually required to be added in steelmaking process are typically 25% to 35% that of the parent oxide pellet. DRI and HBI strength is evaluated by: PHYSICAL CHARACTERISTICS • Tumble test – standard test DR-Grade Pellets Blast Furnace Grade Pellets Lump Iron Ore • Drop test – nonstandard Particle Size Distribution Particle Size Distribution Particle Size Distribution The International Iron Metallics Association +16 6.8% +16 7.3% +53 0% (IIMA) has published a Quality Assessment +12.7 56.7% +12.7 56.9% +37.5 2.4% Guide available on their website (www.metallics. +9.53 94.3% +9.53 92.9% +31.5 13.2% +9x16 87.5% +9x16 85.6% +25 35.5% org). Large to small 1.33 Large to small 1.37 +22.5 43.7% Mechanical properties will vary from pellet size ratio size ratio +19 58.5% +6.73 97.7% +6.73 96.6% +12.7 85.2% to pellet according to a normal distribution, as -3.36 1.7% -3.36 2.3% +6.73 96.9% illustrated in Figure 2. +3.36 98.8% -3.36 1.2% In some cases, DRI can have a large standard Higher fines generation than Low Fines Generation Higher fines generation deviation for properties like crushing strength. DR-grade For most ores and DR furnace operating condi- Linder Reduction Linder Reduction Linder Reduction tions, there is some percentage of DRI pellets Metallization ( %) - 96.8 Metallization ( %) - 95.4 Metallization ( %) - 96.7 that will break with very low compression force Carbon (%) - 1.5 Carbon (%) - 1.7 Carbon (%) - 1.0 or impact energy. A material with a very high TABLE 1: Pellet & Lump Ore Characteristics and Chemical Properties

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COST STRUCTURE OF DR-GRADE IRON OXIDE Example Dr-Grade Pellet Pricing Structure DR-Grade pellet pricing structure is made up of 120 several components: • Linked to the China CFR fines pricing 100 • Fe content pricing adjustment 80 • Freight costs • DR pellet premium 60 An example is shown in Figure 3. $/tonne The price of DR-grade oxide pellets carries a 40 premium. The reason for premium is primarily due to: 20 • Cost of beneficiation

– Upgrading run of mine iron ore to 0 DR-grade is expensive. Note: DRI 62% Fe Fines CFR Fe- VIU Freight Netback Freight DR Pellet 62% Fe DR-Grade China adjustment - (China-Brazil) Netforward Premium Pellet Price (CFR manufacturers have been pushing for ((60/62)*67) (Brazil-MENA) MENA) 62% Fe Fines CFR assumed at $60.00 higher quality DR-grade pellets.

– Additional energy and investment FIGURE 3. Pricing Structure for DR-Grade Oxide Pellets2 costs for beneficiation technology. – Higher yield losses associated with IMPLEMENTING AN ALTERNATIVE MATERIAL increased beneficiation. Each of these two immediate feedstock alternatives for a direct reduction plant • Supply Restriction has its own challenges, which will be looked at below. – High quality ore is more difficult to reach Lump Ore – DR-grade raw material monopolized High-grade lump ore is becoming increasingly more difficult to obtain with these by limited suppliers ore bodies either in more remote locations, or miners are having to go deeper to mine them. There are several MIDREX Plants that are currently feeding lump MATERIAL ALTERNATIVES ore in combination with DR-grade oxide pellets. Some of the advantages and dis- At the time of writing this article, the DR-grade advantages are: premium increases appeared to indicate a shortage in supply. The pricing increases have The Advantages of Using Lump Ore resulted in facilities looking at methods to re- • There can be a financial advantage in using lump ore if premium lump can duce their raw material costs. The first apparent be obtained. choices that appear to be available to a direct • The original Midrex designs assumed a 70%/30% pellet/lump mix without reduction facility to cut material costs or negate a loss in production material shortages are: • Increasing lump when pellets have not been correctly coated has allowed • Include or increase lump ore in the feed an increase in bed temperature by reducing “sticking” tendency. However, mix this advantage is lost if the pellets are correctly coated. • Use blast furnace pellets instead of DR- • In merchant HBI plants, the addition of lump ore promotes a higher grade pellets either partially or totally. quality briquette. This can be attributed to an increase in fines in the furnace, which are beneficial to the formation of briquettes. • Uniform (small deviation in size) lump size can help increase the perfor- mance of the plant due to improved bed permeability.

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The Disadvantages of Using Lump Ore The Disadvantages Of Using Blast Furnace • One disadvantage of using lump ore is increased fines -Grade Pellets generation. This will vary depending on the lump ore • Lower metallics – reduces liquid steel yield in the EAF characteristics. Generating additional fines in the furnace • Increased fines generation – will vary depending on the would have the following effects: pellet. Generating additional fines in the furnace would – Increases the furnace delta (Δ) P. have the following effects: – Can promote channeling. – Increases the furnace delta (Δ) P – this requires – Increases yield losses by 1-2%. This is confined to checking of system pressure (lost seals), PG losses in top gas scrubber in a briquette plant. Yield compressor sizing, and seal gas system sizing. losses would offset any financial advantages and – Can promote channeling. need to be accounted for. – Increases yield losses by 1-2%. This is confined to – Furnace refractory wall buildup due to increased losses in top gas scrubber in a briquette plant. Yield fines. losses would offset any financial advantages and – Potential buildup in bustle ports. need to be accounted for. • Lump ore also can change the chemistry and impact the – Furnace refractory wall buildup due to increased final product. When moving to lump ore, attention should fines. be paid to the chemical properties. Some lump has been – Potential buildup in bustle ports. found to contain high sulfur, which in turn: • Reduction in productivity – typically increases cost per – Temporarily poisons the catalyst in the reformer. ton of DRI. – Changes water chemistry. • Might require an increase in lime coating of the pellets. • If lump size is not controlled and has a deviation in size, this can cause uneven flow and non-uniform bed tempera- tures by promoting channeling of the reducing gases in Editor’s Note: Part 2 will present a strategy for increasing the MIDREX Shaft Furnace. the percentage of lump ore in the feed mix of a MIDREX • Depending on the lump ore purchased, the bed tempera- Plant, which involves MIDREX Remote Professional Services tures might need to be reduced and the NG/ton increased (RPS). A step-by-step case study will document the method to compensate. This is dependent on how “sticky” the ore used to adapt to an alternative raw materials strategy and is and the quality of the lime coating on the DR-grade the results that were achieved. Part 2 will conclude with a series summary. pellets.

BLAST FURNACE GRADE PELLETS References: There are several grades of blast furnace pellets available, each 1. 2017 World Direct Reduction Statistics. (2018, May 31). with its own chemical and physical properties, again showing Retrieved from https://midrex.com/assets/user/newsMidrex the importance of laboratory or basket testing: StatsBook2017.5_.24_.18_.pdf • Acid blast furnace 2. Midrex testing • Fluxed blast furnace 3. https://www.metalbulletin.com • Low Fe blast furnace

The Advantage Of Using Blast Furnace Grade Pellets • Financial – depends on the price spread between BF- grade and DR-grade premiums. However, the pricing is usually higher than lump ore.

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ArcelorMittal Hamburg Turns 50 Leading Another 50 Ironmaking Renaissance YEARS

on scrap supplies. It so happened that Midland-Ross in the USA was introducing a new direct reduction process, known as MIDREX®, about the same time…and the rest is history.

A PLACE IN DR INDUSTRY HISTORY When Hamburger Stahlwerke (HSW) was built in south Hamburg in 1970, a By ANTHONY ELLIOT GREG WALKER MIDREX Plant was included in the project. The plant would supply direct reduced Manager- Project Manager- iron (DRI) for the HSW EAF melt shop and also to Korf’s BSW mill. The MIDREX Technical Services Global Solutions Plant was started up in October 1971, and has produced over 18 million tons of DRI in its illustrious 50 years of operation. INTRODUCTION The HSW DRI-EAF steelworks was inaugurated in April 1972, and by hen Willy Korf built Badische November 1975, had produced one million tons of wire rods. Today, the steelworks Stahlwerke (BSW), his first so- is owned and operated by the ArcelorMittal Group as ArcelorMittal Hamburg and Wcalled ‘mini-mill’ in Kehl in 1968, is one of Germany’s largest wire rod producers and a leading company worldwide his large competitors tried to squeeze him out for producing wire rods by the mini-mill concept. by limiting the availability of scrap steel to use LN Mittal acquired HSW in 1995 and renamed it ISPAT HSW. Through the in its electric arc furnace (EAF). He knew that years, the company name has changed several times, as Mittal expanded his steel if his revolutionary approach to steel produc- operations, culminating with the merger with Arcelor to form the ArcelorMittal tion was to survive and succeed, it would need a Group. The steel mill, which can produce 250 grades of steel, has undergone source of metallic iron to relieve its dependence several upgrades and modifications to increase its liquid steel and wire rod

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ArcelorMittal Hamburg, located on the bank of the Elbe River

capacity. Likewise, the MIDREX Plant has been modernized to steel with hydrogen. The companies will cooperate on several make it capable of over 600,000 tons/year of DRI (Note: the plant projects, ranging from research and development to the imple- was originally built with a rated capacity of 400,000 t/y). mentation of new technologies. The first project, incorporating DRI makes up an average of 45% of the iron charge to the the expertise of Midrex and ArcelorMittal, will demonstrate the ArcelorMittal Hamburg melt shop. The DRI plant has the low- large-scale production and use of DRI made with almost 100% est annual electricity consumption of all MIDREX Plants and hydrogen. includes a unique system that pneumatically conveys DRI fines “Our Hamburg site offers optimum conditions for this inno- and dust from the MIDREX Plant to the melt shop, where they vative project: an electric arc furnace with DRI system and iron are injected into the EAF. ore pellets stockyard, as well as decades of know-how in this area,” Frank Schulz, CEO of ArcelorMittal Germany, said. “The LEADING ROLE IN THE FUTURE use of hydrogen as a reducing agent shall now be tested in a new OF IRON & STEELMAKING shaft furnace.” The ArcelorMittal Group has developed a low-emissions tech- From 2023 onwards, the demonstration plant will produce nology strategy to permanently reduce CO2 emissions, which about 100,000 tons of direct reduced iron per year, initially with targets not only the use of alternative feedstocks but also the “grey” hydrogen sourced from natural gas, and later – once avail- direct avoidance of carbon (Carbon Direct Avoidance, CDA). As able in sufficient quantities and at economical cost – with “green” one aspect of its strategy, ArcelorMittal has launched a first-of- hydrogen from renewable energy sources. its-kind project in its Hamburg steelworks to use hydrogen on “With Midrex technology, we have been producing high an industrial scale for the direct reduction of iron ore for use in quality steel in an efficient and innovative way for 50 years,“ the steel production process. The Hamburg works already has Dr. Uwe Braun, CEO of ArcelorMitall Hamburg, said. "The pos- one of the most energy-efficient production processes of the sibilities of this technology are still not exhausted and we are ArcelorMittal Group due to the production and use of natural working together to make steel production fit for a sustainable gas-based DRI. The aim of the new hydrogen-based process is to future through the direct reduction of iron ore with hydrogen. enable steel production with the lowest CO2 emissions. The innovation capacity of DRI technology is enormous, and its ArcelorMittal commissioned Midrex in September 2019, to potential has not yet been fully developed. We are convinced design a demonstration plant at its Hamburg site to produce that we can still achieve a lot with this technology in order

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FIGUREArcelorMittal 3. voestalpine Texas HBI plant Hamburg

MIDREX CDRI Plant Location: Hamburg, Germany Start-up: 1971 Cumulative Production: 18+ million (through 2019)

to produce excellent steel in a climate- neutral manner”. Dr. Braun continued to say, “Our site is the most energy-efficient production plant Congratulations on in the ArcelorMittal Group. The existing MIDREX Plant in Hamburg is already the 50 Years of Excellence plant with the lowest CO2 emissions for high quality steel production in Europe. With the new hydrogen-based DRI plant, we will raise steel production to a com- pletely new level, as part of our worldwide ambition to be carbon neutral by 2050.” “We are delighted to work with 50 ArcelorMittal”, Stephen C. Montague, YEARS President and CEO of Midrex Tech- nologies, Inc, said. “ArcelorMittal now operates six plants with MIDREX direct reduced iron technology. With num- Midrex wishes to recognize the men and women who over the last 50 years ber seven, we’re going to lead the way in have demonstrated that the DRI-EAF route is the most versatile, cost-effective, using renewable energy to make DRI for environmentally compatible method of steelmaking. Although ownership and steel production. the plant name has changed through the years, the can-do culture and tradition “It’s only fitting that we and Arcelor- of excellence has remained steadfast. Congratulations, ArcelorMittal Hamburg. Mittal have teamed up for this first step -to wards carbon neutral steel production on an industrial scale,” Montague observed. “We are proud that they have chosen to take this momentous step with us.”

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ENERGY TRANSITION IN THE EUROPEAN STEEL INDUSTRY

REALITY NOT EXCEPTION

reduction plants and the use of renewable hydrogen as the reducing agent. The steel industry, especially traditional ironmaking, is among the largest con- tributors of greenhouse gases emissions – in the range of 7-9% of total emissions

– because of its significant reliance on coal. BF/BOF emissions can be 1.6-2.0 kg CO2/ kg steel depending on the technologies used. The natural gas-based MIDREX® Pro-

cess paired with an EAF has the lowest CO2 emissions of any commercially proven steelmaking route using virgin iron ore at 1.1 – 1.2 kg CO /kg steel. By adding a CO By HORST KAPPES & INGO BOTH, 2 2 removal system, the MIDREX Process can lower CO emissions even further to Paul Wurth S.A. (Luxembourg) 2 less than 1/3 of the emissions INTRODUCTION from the BF/BOF route if CO 2 “When steam can be he German Steel Industry sent an open can be stored and/or used. letter to the policy makers in Berlin Yet, there is even more preferably generated Tand Brussels in mid-2017, hoping to re- room for lower emissions from waste heat sources, ceive some relaxation with regard to Emission through use of hydrogen as such as in steelmaking, Trading Cost and final CO emission targets, but a fuel and chemical reactant 2 high temperature to no avail. This was a turning point for the in- in the MIDREX Process. The electrolysis is the most dustry. Together with the acceptance of the re- ultimate method for reduc- efficient technology.” ality of climate change, it became obvious that ing the steel industry’s CO2 the time for CO emission reduction measures footprint is the use of ‘green’ 2 Prof. Dr.-Ing. Heinz Jörg Fuhrmann, has come. Today every steel producer in Europe hydrogen produced from Chief Executive Officer and Chairman has made commitments to reduce its CO2 foot- renewable energy for DRI of the Executive Board of Salzgitter AG print and each of the programs includes direct production.

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‘GREEN’ HYDROGEN HYLINK SOEC Developing efficient electrolyser Hydrogen production technology to maturity is a precondi- Net production rate 750 Nm3/h tion for successful energy transition. Production capacity dynamic range 5% ... 100% In early 2019, Paul Wurth acquired a Hot idle ramp time < 10 min 20% participation in Sunfire, a lead- Delivery pressure 1 ... 40 bar (g) after compression ing developer of steam electrolys- Hydrogen purity up to 99.99% after gas cleaning ers for the production of renewable, Power input and electrical efficiency System power consumption (AC) 2,680 kW low-cost industrial hydrogen. The Specific power consumption at stack level (DC)* 3.3 kWh/Nm3 motivation was to actively support Specific power consumption at system level (AC)* 3.6 kWh/Nm3 and develop fossil-free ironmaking, System electrical efficiency** 84% a critical step in hydrogen-based Steam input steel production. Consumption 860 kg/h Electrolysis, which uses elec- Temperature 150˚C ... 200˚C tricity to split water into hydrogen Pressure 3.5 bar (g) ... 5.5 br (g) and oxygen, is a promising technol- Other specs 2 ogy for hydrogen production on an Footprint*** ~ 300 m Ambient temperature -20˚C ... 40˚C industrial scale. Water electrolysis * Power consumption at ambient pressure accounts for 4% of the global hydro- ** Lower heating value of hydrogen referred to AC power input *** Average space requirement for a 2.68 MW system comprising all auxiliary systems gen production. Since the hydrogen TABLE I. Sunfire-Hylink SOEC Process Technical Details molecules come from water and not hydrocarbons, it may be considered ‘green.’ However, there are These cells work at high temperature (around 800°C). three constraints for its industrial use: 1) in most countries, elec- Sunfire´s electrolysers require 26-28% less electricity, compared tricity is generated primarily with fossil fuels so there remains to alternative technologies, meaning that 35-40% less renewable a large overall CO2 footprint, 2) hydrogen from electrolysis is not energy is necessary for the same H2 output. Condition to this currently available in the volumes required for large industrial is the availability of low quality steam (e.g. 140 °C, 3 bar), which users like steelmaking and 3) the cost of hydrogen is too high can be easily recovered from waste heat sources in metallurgical for many applications at prevailing electricity prices. plants. There are several technologies at various levels of techni- Another feature of Sunfire’s electrolysers is the capability cal readiness to produce hydrogen from water. One of the most of producing syngas (CO and H2) when being fed with CO2 promising of these is solid oxide electrolysis cell (SOEC). and steam. This process is called co-electrolysis. Interesting

FIGURE 1. Standard Sunfire-Hylink SOEC Unit

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SUNFIRE-HYLINK SOEC • Flexible - Hydrogen production can be changed from COMPETITIVE ADVANTAGES part load to full load (5 to 100%) flexibly, in a short timeframe • Cost-Efficient - Heat utilization makes system ultra-efficient (η > 80 per cent LHV) • Modular - Modular design to meet customer’s demand for hydrogen • Productive - Promises extremely low hydrogen production costs compared to legacy technology • Pure - Renewable electricity and steam for pure (< 3 €/kg), depending on electricity prices hydrogen (99.999 percent)

applications are at hand for met- HYLINK ALKALINE allurgical plants, as well as other Hydrogen production domains like synthetic fuel produc- Production rate 1,065 ... 1,090 Nm3/h Production capacity dynamic range 15% ... 100% tion, using CO2 from unavoidable Delivery pressure 5 ... 30 bar (g) without compression CO2 sources. A standard Sunfire-Hylink Hydrogen purity up to 99.999% after gas cleaning Operation temperature up to 90˚C SOEC unit of the 3 MW class is Power input and electrical efficiency shown in Figure 1 (previous page). System power consumption (AC) 5,000 kW TABLE I (previous page) shows Specific power consumption at stack level (DC)* 4.4 ... 4.5 kWh/Nm3 the technical details of Sunfire- Specific power consumption at system level (AC)* 4.6 ... 4.7 kWh/Nm3 Hylink SOEC process. System electrical efficiency** 64 ... 65% Alkaline electrolysis, another Feedstock technology for producing hydrogen Water consumption 1m3/h from water, has been used at com- Elecrtrolyte 25 ... 30% KOH aqueous solution mercial scale for decades and is well Other specs Proven system runtime > 20 years proven. Recently Sunfire acquired Stack lifetime up to 90,000 h Swiss Alkaline Electrolysis Compa- Footprint*** ~ 300 m2 ny IHT, which designs and manufac- Ambient temperature 5˚C ... 40˚C tures one of the most reliable and * Power consumption at operational pressure of 5 or 30 bar (g) cost effective alkaline electrolysers ** Lower heating value of hydrogen referred to AC power input *** Average space requirement for a 5.0 MW system comprising all auxiliary systems in the market. IHT has a legacy of TABLE II. Sunfire-Hylink Alkaline Process Details more than 70 years of experience worldwide and brings with it a ref- erence plant capacity of 240 MW. With its two differentiated electrolysis technologies – SOEC and Alkaline – Sunfire can offer the optimal solution for any hydrogen application and strengthens its po- sition as a leading electrolysis tech- nology provider in the green hydro- gen revolution. Technical details of Sunfire-Hylink Alkaline process are shown in TABLE II.

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FIGURE 2. Standard Stack Sunfire-Hylink Alkaline Unit

A standard stack Sunfire-Hylink Alkaline unit of 5 MW there are six MIDREX Modules that utilize gas made from coal, scale is shown in Figure 2. with hydrogen-to-CO ratios from 0.37 to 0.56. The FMO MIDREX

Plant in Venezuela uses a steam reformer with an H2/CO ratio HYDROGEN FOR IRONMAKING that has varied from 3.3 to 3.8 and has operated for decades. Industrial use of hydrogen, such as for producing iron, offers the Thus, the MIDREX Process has successfully produced DRI with advantage of a fixed location and large demand. Hydrogen can H2/CO corresponding to the range of 40% to 50% natural gas be generated on-site or supplied over-the-fence with significant- substitution with hydrogen. ly lower infrastructure cost per volume of gas. Steel mills also The MIDREX Process has the flexibility to allow the ad- have the ability to integrate hydrogen generation with other dition of hydrogen to displace natural gas in the feed gas in utilities available on site, such as steam and other gases. the range of 0% to 100% with only minor equipment modifi- MIDREX Plants already use large amounts of hydrogen cations. If hydrogen is abundant and economical at the onset produced from reformed natural gas to convert iron oxide into of the project development, the process can be simplified into ™ DRI and can be adapted to accommodate more hydrogen as it MIDREX H2 (Figure 3). becomes more available and economically priced. Currently,

Present: Near Future (Transition): Future:

NG based DRI + EAF NG/H2 based DRI + EAF H2 DRI + EAF

NG NG with Hydrogen Addition

Natural Gas replacement by Hydrogen Feed Gas 100% Natural Gas 100% Hydrogen 20% 50% 70%

H2 55% 62% 72% 77% 100% Reducing CO 35% 28% 18% 13% Gas 0% Others 10% (mostly CO2, H2O, CH4, N2)

H2 /CO 1.6 2.2 4.0 5.9 n/a Carbon in DRI 2.5% ~ 1.5% ~ 1.0% ~ 0.5% 0% 4% w/ ACT

CO2 emissions 500 From heater (if fuled 400 250 150 by hydrocarbons) (kgCO2 /tDRI) * < 250 w/CCUS **

* only includes CO2 emissions from flue gas (largest source) ** CCUS = carbon capture for Utilization and Storage FIGURE 3. MIDREX Process Using Hydrogen

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FIGURE 4. Layout of Fossil-free Integrated DR-EAF Steel Mill with MIDREX H2 Plant Fueled by Sunfire Electrolysers

CONCLUSION Paul Wurth has invested in Sunfire-Hylink, a German elec- Producing iron via the traditional blast furnace route is a large trolyser technology company, in order to produce renewable, low-cost industrial hydrogen. This ‘green’ hydrogen can be used contributor to the emission of greenhouse gases, notably CO2. to support and develop fossil fuel-free ironmaking, and a Sun- Mitigating CO2 emissions in the iron and steel industry is be- fire facility could provide the hydrogen for a MIDREX H Plant coming critical worldwide, as the cost and social impact of CO2 2 emissions increases over time. The best possibility for reducing in a fossil fuel-free steel mill of the future (Figure 4). the steel industry’s CO2 footprint is the use of hydrogen as an en- ergy source and reductant in the MIDREX Process for producing direct reduced iron (DRI).

Today, reduction of CO2 emissions by 50% (over BF/BOF) is achievable and well proven in the DRI-EAF steelmaking route. The MIDREX Process can accept ‘green’ hydrogen produced from water electrolysis as it becomes available and economical, which will further reduce CO2 emissions.

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The full news articles are available Midrex News & Views on www.midrex.com

Mikhailovsky HBI Selects MIDREX Process for World´s Largest HBI Plant

ikhailovsky HBI, which was Mjointly established by USM and Mikhailovsky GOK (part of Metalloinvest), has signed a contract with Primetals Technologies and con- sortium partner Midrex Technologies, Inc. to supply a new Hot Briquetted Iron (HBI) Plant in Zheleznogorsk, Kursk region, Russia. The plant will be designed to produce 2.08 million met- ric tons of HBI per year. Latest design features will ensure reduced energy consumption and environmental im- pact. The contract includes engineer- ing, supplies and advisory services. Startup is expected in the first half of PICTURED AT THE CONTRACT SIGNING ARE (left to right): Aashish Gupta, Executive Vice President and Head of Global Business Unit – Upstream, Primetals Technologies; Etsuro Hirai, Chief Technology Officer of Primetals Technologies and CEO 2024. of Primetals Technologies Austria; Nazim Efendiev, CEO of Management Company Metalloinvest; Pavel Mitrofanov, Deputy CEO of USM; and Stephen Montague, President and CEO of Midrex

Tosyali Algérie Sets World Production Record

osyali Algérie A.Ş. (Tosyali), utilizing MIDREX® Technology, Tin only its second full year of operation, produced more than 2.23 million tons of direct reduced iron (DRI) in 2020, which is a world record for a single direct reduction module. The 2.5 million tons per year (t/y) DRI plant began using hot DRI (HDRI) at the electric arc furnace (EAF) melt shop in February 2019. HDRI made up almost 72% of total production in 2020 (1.6 million tons), with average metallization of about 94% and carbon averaging around 2.2%. Iron ore pellets feeding the DRI plant were supplied predomi- nately by Tosyali Algérie’s own 4.0 million t/y pellet plant on site.

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The full news articles are available Midrex News & Views on www.midrex.com

Sean Boyle to Manage Midrex Gulf Services Midrex Sales In North Recommended for ISO America & Europe Certification

ean Boyle has been Spromoted to the position of Key Account

Manager - North America/ Midrex Technologies Gulf Services FZCO Europe. In his new role, Sean will be responsible for idrex Gulf Services FZCO (Dubai) completed its ini- managing all Plant Sales Mtial ISO 9001:2015 Certification Audit in January 2021, and Aftermarket opportu- with no non-conformity findings and the recommendation nities for new and existing for certification. It was noted that MGS well exceeded audit SEAN BOYLE clients in these regions. standards and had identified and developed the quality docu- Boyle joined Midrex in 2013 as a Mechanical Engineer and ments specific to their operating process and were fully pre- served most recently as Manager - Special Projects. pared to substantiate their answers to the auditor’s questions.

Lauren Lorraine: Editor CONTACTING MIDREX Vincent Chevrier, PhD: Technical Advisor Midrex Technologies, Inc. General E-mail: DIRECT FROM MIDREX is published quarterly by MIDREX®, MEGAMOD®, [email protected] Midrex Technologies, Inc., SUPER MEGAMOD®, ITmk3®, 3735 Glen Lake Drive, Suite 400, Charlotte, MxCōl®, DRIpax® and HOTLINK® North Carolina 28208 U.S.A. are registered trademarks of Phone: (704) 373-1600 Phone: (704) 373-1600 Fax: (704) 373-1611, Kobe Steel, Ltd. 3735 Glen Lake Drive, Suite 400 Web Site: www.midrex.com under agreement Charlotte, NC 28208 ™ with Midrex Technologies, Inc. MidrexConnect , Thermal Reactor ™ ™ System , MIDREX H2 , and MIDREX The publication is distributed worldwide by email General Press/Media Inquiries ACT™ are trademarks of Midrex to persons interested in the direct reduced iron Lauren Lorraine Technologies, Inc. (DRI) market and its growing impact on the iron [email protected] and steel industry. Corex® and Finex® are trademarks of Phone: (704) 378-3308 ©2021 by Midrex Technologies, Inc. Primetals Technologies. To subscribe, please register The processes and equipment depicted in this material All references to tons are metric are subject to multiple patents and patents pending in at www.midrex.com unless otherwise stated. the U.S. and internationally. to receive our email service.

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